Published 4:00 am, Tuesday, March 9, 2004

Photo: RICH PEDRONCELLI

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Lee Jewell, left, and Kai Noble, right, both of San Franciso shake pill bottles as they demonstrate against Gov. Arnold Schwarzenegger's plans to cap a number of public health programs during a rally held in Sacramento, Calif., Monday, March 8, 2004. More than 200 people demonstrated against Schwarzenegger's budget proposal which would cap spending on the AIDS Drug Assistance Program at current levels and maintain sevices only for existing clients while placing a cap on accepting any future clients. (AP Photo/Rich Pedroncelli) Photo caption less

Lee Jewell, left, and Kai Noble, right, both of San Franciso shake pill bottles as they demonstrate against Gov. Arnold Schwarzenegger's plans to cap a number of public health programs during a rally held in ... more

2004-03-09 04:00:00 PDT Sacramento -- Proposals by Gov. Arnold Schwarzenegger to cap enrollment in programs designed to help uninsured children and AIDS patients were categorically rejected Monday by a Senate budget subcommittee.

The committee turned down proposals limiting enrollment in several areas, including the Healthy Families program, a program that provides care for children who are critically ill with cancer or other life-threatening diseases and an AIDS drug assistance program.

"Democrats are committed to finding inefficiencies in state government and will use any money we find to provide life-saving relief to our most vulnerable citizens," said Sen. Wes Chesbro, D-Arcata (Humboldt County), chairman of the Senate Budget Committee.

To the applause of hundreds of AIDS advocates and patients who traveled to the state Capitol to protest the proposed enrollment cap, Chesbro said limiting the number of patients would cost lives and money.

"It's clear this would be sending people not only to a lifetime of disability, and eventually death," said Chesbro. "Not only is that not humane, it will cost the state money in the long run in hospitalization costs."

The Senate subcommittee on health services voted 3-1 to reject the enrollment cap, which would have saved the state $550,000. Recognizing that the state is still facing a $12 billion budget shortfall, Chesbro proposed efficiencies in the program he believed would save the state $800,000.

Those included allowing automatic refills of medications for up to six months, saving time for doctors and program administrators.

Throughout the hearing, the committee chided the department for not fully capitalizing on drug rebates and other cost savings.

Sen. Tom McClintock, R-Northridge (Los Angeles County), suggested looking at curbing the enrollment requirements on some of the programs, noting that for the children with critical illness program there is no income requirement. He said that someone who earns $10 million could receive the benefit. McClintock voted against the cap, although he said he did not support the idea.

AIDS advocates were heartened with the subcommittee's action.

"We're extremely gratified they ultimately understood it was a matter of life or death," said Fred Dillon, public policy director of the San Francisco AIDS Foundation. "We certainly willing to work with the Legislature and the governor's office to come up with solutions. We understand we are faced with a terrible fiscal crisis in California.

Dillon and a few others met with representatives of the governor's office to discuss other ways to save money.

H.D. Palmer, a spokesman for the Department of Finance, said the administration did not want to take benefits away from those already in the programs, which is why they proposed the cap.

"If the Legislature chooses to reject them, the simple math is that they are going to have to come up with like amount of savings," he said.

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